Does Angry Chickz reserve the right to advance Developer's share of the costs of any arbitration proceeding?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Company reserves the right, but has no obligation, to advance Developer's share of the costs of any arbitration proceeding in order for such arbitration proceeding to take place and by doing so will not be deemed to have waived or relinquished our right to seek the recovery of those costs in accordance with this Section 11.1.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, Angry Chickz retains the right, but not the obligation, to advance the Developer's share of arbitration costs. This is to ensure the arbitration can proceed. However, by advancing these costs, Angry Chickz does not waive its right to seek recovery of these advanced costs from the Developer later.
This means that while Angry Chickz may initially cover the Developer's portion of the arbitration expenses, the Developer is ultimately responsible for these costs. This arrangement could benefit a Developer who may not have sufficient funds to initiate arbitration.
It is important for prospective Angry Chickz developers to understand that this advancement is not a form of financial assistance or a waiver of responsibility. Developers should factor potential arbitration costs into their financial planning and be prepared to reimburse Angry Chickz for any advanced funds.